Dowlais Group PLC (DWL) AI Stock Analysis

• Market Cap: £1.22B
• Dividend Yield: 5.02%
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -8.09%
• EPS Growth: 82.87%
• Country: UK
• Employees: 23,327
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.06
• Shares Outstanding: 1,316,658,700
• 10 Day Avg. Volume: 2,537,505
• 30 Day Avg. Volume: 2,456,579
• PEG Ratio: 0.08
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -12.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £89.93
• Price Target Upside: -3.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 98.00p ▲(5.26% Upside)

Dowlais Group PLC's overall stock score is primarily influenced by its financial challenges, including declining revenues and operational losses. However, the stock shows positive technical momentum and benefits from strategic corporate events, such as board appointments and potential mergers, which could improve its future outlook. The high dividend yield also provides some appeal to investors.

Positive Factors

Diversified product lines across driveline and powder metallurgy

Dowlais sells both driveline systems (including e-drive components) and powder-metal parts, giving exposure to conventional, hybrid and electric powertrains and industrial end-markets. This product and end-market diversification supports more stable long-term revenue as vehicle architectures shift.

Multi-year, program-based OEM revenue model

Revenue largely comes from multi-year OEM platform contracts and per-unit supply agreements. Such program-based contracts create durable, predictable volume streams when retained, align cash generation with production ramps and preserve structural customer relationships over several model cycles.

Positive corporate actions could enhance scale and governance

Recent strategic board appointments and a potential merger with American Axle represent structural corporate moves that could materially increase scale, broaden customer access and combine complementary technologies. If executed, they can strengthen competitive positioning and long-term market reach.

Negative Factors

Declining revenue trend

Revenue has declined year-over-year, indicating shrinking content per vehicle, lost program share or weaker OEM volumes. Persistent top-line contraction erodes operating leverage, reduces scale benefits in manufacturing and pressures margins and investment capacity over the medium term.

Negative free cash flow and poor cash generation

Free cash flow turning negative and weak operating cash conversion versus net income indicate the company is not generating sufficient internal funds. This undermines ability to fund capex, service debt and sustain dividends without external financing, limiting strategic optionality.

Rising net debt and moderate leverage

Balance sheet shows moderate leverage but rising net debt and falling shareholders' equity, which increase refinancing and solvency risk. Higher leverage reduces flexibility to invest in new programs or weather demand shocks, and can strain margins if interest costs rise.

Dowlais Group PLC Business Overview & Revenue Model

Company Description

Dowlais Group Plc manufactures and sells automotive parts in the Americas, Europe, and Asia. The company engages in developing, manufacturing, and supplying automotive drive systems for conventional and electric vehicles. It manufactures sideshafts, propshafts, and constant velocity joints for passenger vehicles; and AWD systems and eDrive systems, as well as provides component solutions to systems, including control software. The company is also involved in the production of metal powders and powder metal parts for the automotive and industrial sectors, as well as the provision of hydrogen storage solutions. The company was formerly known as Dowlais Group Headquarters Plc and changed its name to Dowlais Group Plc in February 2023. Dowlais Group Plc was incorporated in 2023 and is based in London, the United Kingdom.

How the Company Makes Money

Dowlais Group PLC generates revenue through multiple streams primarily focused on the automotive sector. The main source of revenue comes from the sale of its powertrain components and systems to original equipment manufacturers (OEMs) and automotive suppliers. The company has established significant partnerships with leading automotive manufacturers, which help secure long-term contracts and ongoing projects. Additionally, Dowlais may also earn revenue from engineering services, consulting, and aftermarket support for its products. As the automotive industry increasingly shifts towards electrification, Dowlais capitalizes on this trend by investing in research and development to create cutting-edge technologies that meet the evolving demands of the market.

Dowlais Group PLC Financial Statement Overview

Summary

Dowlais Group PLC is facing financial challenges highlighted by declining revenues, operational losses, and negative free cash flow. While the balance sheet shows some stability, the overall financial health is weakened by high leverage and consistent net losses. The company needs to address operational inefficiencies and enhance cash flow management to improve its financial standing.

Income Statement

The company has experienced declining revenue with a decrease from 2023 to 2024. Gross profit margin has remained consistently low, and the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are weak, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio shows moderate leverage, but the increasing net debt is concerning. The company has a reasonable equity ratio, which suggests some financial stability. However, declining stockholders' equity over the years is a potential risk.

Cash Flow

Free cash flow has turned negative, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is poor due to negative net income, highlighting cash generation issues. The free cash flow to net income ratio reinforces concerns about cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.23B	4.34B	4.86B	4.59B	4.12B	4.13B
Gross Profit	412.00M	646.00M	757.00M	658.00M	581.00M	470.00M
EBITDA	387.00M	345.00M	31.00M	386.00M	263.00M	342.00M
Net Income	-86.00M	-173.00M	-501.00M	-82.00M	-302.00M	-199.00M
Balance Sheet
Total Assets	5.54B	5.71B	6.23B	9.80B	10.04B	10.43B
Cash, Cash Equivalents and Short-Term Investments	325.00M	354.00M	313.00M	270.00M	275.00M	141.00M
Total Debt	1.48B	1.44B	1.31B	3.44B	2.71B	2.77B
Total Liabilities	3.37B	3.40B	3.67B	4.79B	5.21B	5.63B
Stockholders Equity	2.13B	2.27B	2.53B	4.93B	4.80B	4.78B
Cash Flow
Free Cash Flow	-35.00M	-71.00M	12.00M	-12.00M	55.00M	205.00M
Operating Cash Flow	152.00M	120.00M	307.00M	210.00M	223.00M	390.00M
Investing Cash Flow	-197.00M	-119.00M	-262.00M	-137.00M	-115.00M	-140.00M
Financing Cash Flow	38.00M	17.00M	23.00M	-100.00M	26.00M	-364.00M

Dowlais Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DWL, the sentiment is Positive. The current price of 93.1 is above the 20-day moving average (MA) of 92.85, above the 50-day MA of 87.49, and above the 200-day MA of 76.51, indicating a bullish trend. The MACD of 2.23 indicates Positive momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 39.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DWL.

Dowlais Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWDN	74 Outperform	£4.49B	18.04	24.46%	2.57%	0.13%	-0.06%
WIX	67 Neutral	£507.11M	23.90	15.65%	3.83%	3.98%	-22.94%
BWY	65 Neutral	£3.17B	20.46	4.49%	2.62%	16.91%	20.93%
VTY	63 Neutral	£2.12B	-218.82	-0.31%	―	-0.57%	-104.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DWL	61 Neutral	£1.22B	-14.52	-3.81%	5.02%	-8.09%	82.87%
HEAD	47 Neutral	£35.39M	-0.78	-19.28%	―	-11.65%	-273.57%

Dowlais Group PLC Corporate Events

Dowlais Expects 2025 Results to Beat Guidance on Higher Margins and Cash Flow

Dowlais Group plc reported that its 2025 trading performance exceeded earlier guidance, with unaudited figures indicating adjusted revenue of around £5 billion, representing 3.1% year-on-year growth at constant currency and 1.3% on a reported basis after foreign exchange headwinds. Adjusted operating profit is expected to be at least £370 million, up 14% year-on-year, driving an adjusted operating margin of no less than 7.4%, an improvement of at least 80 basis points, with both Automotive and Powder Metallurgy contributing to margin expansion. Management attributed the stronger profitability to global footprint restructuring, commercial recoveries from prior volume losses and ongoing performance improvement measures, which more than offset operational inefficiencies at two North American plants. Adjusted free cash flow is forecast to be no less than £100 million, ahead of the prior year, helped by higher operating profit, lower capital expenditure and one-off cash receipts from asset disposals and customer advances, underlining a strengthening cash and operational profile for stakeholders.

The most recent analyst rating on (GB:DWL) stock is a Hold with a £103.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Dowlais Group Chair Takes on New Role at TORM plc

Dowlais Group PLC has announced a significant leadership change as Simon Mackenzie Smith, the Chair of its Board, has been appointed as the chair of the board of TORM plc. This appointment may enhance Dowlais Group’s strategic positioning and influence within the industry, potentially impacting its stakeholders positively.

The most recent analyst rating on (GB:DWL) stock is a Hold with a £88.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Dowlais Group PLC Announces Director Appointment

Dowlais Group PLC has announced the appointment of Celia Baxter, their Senior Independent Director and Chair of the Remuneration Committee, as a non-executive director at Genus plc. This move may enhance Dowlais Group’s strategic connections and influence within the industry, potentially benefiting stakeholders through strengthened leadership and governance.

The most recent analyst rating on (GB:DWL) stock is a Hold with a £77.60 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Dowlais Group PLC Strengthens Board with New Appointment

Dowlais Group PLC has announced a significant board appointment, with Fiona MacAulay joining as an independent non-executive director. This move is part of a broader strategy to strengthen governance and oversight, as MacAulay will also chair the Remuneration Committee and serve on the Audit and Nomination Committees at Rosebank Industries PLC, potentially enhancing collaborative opportunities and strategic alignment between the two companies.

The most recent analyst rating on (GB:DWL) stock is a Hold with a £77.60 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Dowlais Group PLC Expects Strong Year-End Performance Amid Market Challenges

Dowlais Group PLC reported strong operational execution in its latest trading update, with performance expected to reach the top end of prior guidance for the full year. Despite a challenging market environment, the company achieved a 1.1% year-on-year growth in adjusted revenue at constant currency, with significant contributions from the ePowertrain product line and its joint venture in China. The group’s adjusted operating margin improved due to commercial recoveries and restructuring initiatives, offsetting some operational inefficiencies. The company remains confident in mitigating the impact of U.S. tariffs through commercial actions and expects its full-year performance to align with the upper range of its guidance, bolstered by a potential merger with American Axle, which could enhance its competitive positioning.

The most recent analyst rating on (GB:DWL) stock is a Hold with a £78.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.